But why? Didn’t Mark Zuckerberg ‘donate’ 99 per cent, or $45 billion, of his wealth to charity? Didn’t he receive accolades from all over the world for the magnanimous gesture? We, too, mentioned it though we focussed on the happy announcement of the birth of the couple’s daughter, Max.
Financial Times chief US commentator and columnist Edward Luce pointed out that the 31-year-old tech czar is transferring that humongous wealth into a limited liability company (LLC), which would not be considered a charity by the US Inland Revenue.
In a defence posted on his Facebook account Zuckerberg claimed that “just like everyone else, we will pay capital gains taxes when our shares are sold by the LLC”.
Luce mentions that Facebook paid just around £4,327 in UK corporate taxes in 2014. It is known for taking steps to either reduce its tax liability or evade it altogether – like it did in 2012 by writing off employee stock options as an expense.
Kyran Fitzgerald of the Irish Examiner says that Zuckerberg’s decision shows his low-level of confidence in various government agencies and, therefore, he devised a way to bypass the Government itself even if for a noble cause.